Ford Motor Company
Ford Motor Company is the third largest automobile manufacturer in the world based on automobiles sold. Ford manufactures and distributes automobiles in 200 markets across six continents (Datamonitor 4). Ford's brands include Ford, Jaguar, Lincoln, Mercury, Volvo, Land Rover, Aston Martin, and Mazda. Ford's key products include passenger cars, trucks, busses and vans, sport utility vehicles, vehicle accessories, after-sales vehicle parts and products and extended repair service products. According to Fortune Magazine in 2007 Ford was the seventh ranked American-based company listed on the fortune 500 list, which was based on Ford's global revenues in 2006 of 160.1 billion. The company's success comes from its ability to focus on customer satisfaction and loyalty, anticipating and meeting changing customer needs, and delivering innovative products that exceed quality standards and are price friendly and also environmentally friendly.
The financial stability of Ford and the long-term stability of our world are met by Ford's strategy to lead with its products. Several key strategies are used by Ford that help to develop products that are of high quality, affordable to consumers and that are in high demand. These strategies include; continuous improvement of quality standards and customer satisfaction, adjusting to consumer demands by developing state-of-the-art technology that is cleaner and more fuel efficient, and delivering customer-focused innovations faster. If these strategies are implemented correctly Ford can overcome many or the driving forces that control competition in the automobile industry.
Driving forces in an industry are the major causes that change the industry and the competitive condition of that industry. The main driving forces that significantly alter the automobile industry include; competition and globalization, new technology and innovations, changes in cost and efficiency, regulatory influences and government policy changes, and changes in societal concerns, attitudes, and lifestyles.
Globalization is when automobile manufacturers offer their products internationally. One reason manufacturers do this is to increase sales in faster growing markets. Also production costs can be cut due to lower labor costs in markets around the world. Ford Motor Company is a strong believer in globalization; it manufactures vehicles in six continents across the world. Ford focuses on three primary types of emerging markets. The first market is developing countries such as China, India, and Brazil. The economies of these markets are growing and so is the need for products like automobiles. Ford realizes the amount of money consumers make in these developing countries and adjusts products to make them accessible to these consumers. In 2006, production capacity in China increased to 200,000 units ("For a More Sustainable Future" 7.) Also in 2006 Ford ranked second for customer satisfaction in India by J.D. Power Asia Pacific.
The second emerging market Ford is focusing on is revitalizing economies such as Russia that are experiencing periods of growth after long periods of economic stagnation.
The third emerging market Ford focuses on is high-growth niche market across the U.S. and Europe. Ford has developed and will continue to develop hybrid vehicles, advanced clean technology, and smaller more fuel-efficient vehicles that suit customers in a certain region or customers with different driving conditions.
New technology and innovations is also a major driving force in the automobile industry. The ongoing change in technology alters the pattern of competition by attracting more buyers. Innovations in production techniques allow manufacturers to produce products faster, more efficiently and cleaner. Ford focuses its innovation on design, technology, safety, and the environment. Ford's innovations are based on customer demands. Today more customers want...
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